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Lecture Business marketing: Connecting strategy, relationships, and learning (4/e): Chapter 4 - Dwyer, Tanner

Chapter 4 - Organizational buyer behavior. In this chapter, students will be able to understand: Selling business to business successfully, buying determinants theory, buying center roles, dimensions of buying centers, time fragmentation influences seller’s marketing efforts, overcoming risk, | 4- Copyright ©The McGraw-Hill Companies, Inc. Permission required for reproduction or display 4- Chapter 4 Organizational Buyer Behavior McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved 4- SELLING BUSINESS TO BUSINESS SUCCESSFULLY. UNDERSTANDING WHAT MAKES BUYERS BUY THE THEORIES OF BUYER MOTIVATION BUYING DETERMINATES THEORY THINK: WHAT FACTORS AFFECT THE BUYER? ROLE THEORY THINK: WHAT ROLE IS A BUYER PLAYING? BEHAVIOR CHOICE THEORY THINK: WHAT STEPS WILL A BUYER TAKE? McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved 4- BUYING DETERMINANTS THEORY Individual factors Organizational factors Market factors Environmental factors Exhibit 4-1 McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved 4- BUYING CENTER ROLES PERSON Secretary Vice President Office Manager Secretary & Office Manager | 4- Copyright ©The McGraw-Hill Companies, Inc. Permission required for reproduction or display 4- Chapter 4 Organizational Buyer Behavior McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved 4- SELLING BUSINESS TO BUSINESS SUCCESSFULLY. UNDERSTANDING WHAT MAKES BUYERS BUY THE THEORIES OF BUYER MOTIVATION BUYING DETERMINATES THEORY THINK: WHAT FACTORS AFFECT THE BUYER? ROLE THEORY THINK: WHAT ROLE IS A BUYER PLAYING? BEHAVIOR CHOICE THEORY THINK: WHAT STEPS WILL A BUYER TAKE? McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved 4- BUYING DETERMINANTS THEORY Individual factors Organizational factors Market factors Environmental factors Exhibit 4-1 McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved 4- BUYING CENTER ROLES PERSON Secretary Vice President Office Manager Secretary & Office Manager Office Manager Vice President of Operations ROLE Initiator-reports that fax keeps breaking down Controller-sets budget for purchase of new fax Gatekeeper-gathers review from vendors. Influencers-view demonstrations narrow choices Recommender-recommends a particular product to decision maker Decision Maker – Selects fax to purchase McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved 4- DIMENSIONS OF BUYING CENTERS TIME DIMENSIONS TIME IS HIGHLY FRAGMENTED: Many participants for short time participation TIME IS NOT FRAGMENTED: Same people stay through entire process VERTICAL DIMENSIONS How many layers of management are involved in decision-making HORIZONTAL DIMENSIONS How many departments are involved in decision-making FORMALIZATION DIMENSION Purchasing tasks and roles are guided and enforced by written procedures and policies McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All .